This document summarizes a presentation on optimizing returns processes in e-commerce. It discusses managing returns as a two-way traffic process and key components of the reverse supply chain like recovery, inspection, and disposition of returned goods. It provides examples of touch points and returns processing handled by CT Freight in Australia. The presentation notes common returns rates and costs for retailers and advocates adding value through dedicated returns facilities and automated processes. It also provides a case study of a UK fashion retailer that improved customer satisfaction and retention by offering free returns processing in Australia through CT Freight.

1. Topic: Optimizing the Returns Process… Reverse Logistics
Date: Thursday 15th June 2017
Time: 16:00 – 17:00 (Sydney time)
With: Alex Allen, Managing Director WCA eCommerce Network
Mile Sucur, General Manager Express & eCommerce Division CT Freight Pty Ltd (Australia)

2. Discussions Points:
• Two way traffic
• The Reverse Supply Chain
• Diminishing Returns
• Touch Points
• CT Freight Returns Processing
• Value Adds
• Case Study example
• Benefits
• Questions

3. Two Way Traffic!
• Logistics Providers who operate dedicated eCommerce
Services know that managing the Returns process; goods
from the Consumer back to the Seller or Manufacturer is
a fundamental component.
• Where most people view as an headache, it is vitally
important when looking at your Customers eCommerce
needs, Reverse Logistics processing and handling is
planned, timelines and costs identified and tested for
from day one!

4. The Reverse Supply Chain
Key Components:
• Recovery, re-collection, transportation, handling and
storage.
• Inspection and quality checks.
• Re-routing, recycling and/or disposal management.
• Data/ information flows, returns confirmation, state
of goods reports, inventory and credit payments.
• Repackaging, relabelling, refurbish, recycle, repairs,
resale.
• Return to Vendor, or manage disposal or secondary
market sale.

5. • Some eTailers and online Sellers can expect up 40-50% of orders will be returned.
• Typical reasons: buyer changed mind, incorrect sizes, broken or damaged items.
• Buyer unsatisfied with goods, charges or service.
• Current Industry average is that 25-30% of orders will be returned.
• Returns cut Retailers profits by 10-20% per annum.
• Time is money, the value of goods can diminish rapidly!
Diminishing Returns!

6. View Returns Management as an opportunity to improve your Customer relationships and provide value added
services.
• Establish dedicated Returns Processing operations.
• Look at the Process Flow:-
• The type of Goods/Products
• Volumes, special handling and storage
• Information
• Payments
• Time
• Automate process where you can
• Visibility and Communication; and with which Parties (Customer/ Supplier/ Third Parties)
• Transparent & clear Customer Agreements, who is responsible for what and by when, what to do in the event
of, asset and inventory management and controls- Tailored processing Rules.
• Return merchandise authorization (RMA) management, credit reconciliation and disposition management.
Touch Points

7. Returns Processing: CT Freight Pty Ltd Sydney Australia
Mile Sucur, General Manager
Express & eCommerce
Division CT Freight

8. Adding Value
• Dedicated Returns Processing Facilities
• Provide Tailored Services and Solutions
• Agreed Returns actions, rules, processes, timelines and visibility
• Automate where possible, technology, warehouse management systems,
reporting and Customer Service.

9. Plenty of Opportunity
• Unpack and Condense
• Offer a PO Box
• Offer a Storage locker
• Tranship Services
• Into Store Transfers
• Email Confirmation
• Offer a physical address
• Receive and Report
• QA Return Items
• Repack and Ship
• Airfreight Consolidations
• Bulk Shipping / LCL
• Storage
• Data back to WMS

10. Free Returns

11. Free Returns

12. Nothing is for free!

13. Case Study
• A men's fashion retailer from the UK was experiencing
customer service issues and a diminishing market
share.
• They sent a team of their best executives to Australia
and created a focus group from its regular customers.
• They came up with a great Solution which was posted
on their website.

14. Managing Returns
The focus group came up with these main issues:
• Clients were paying to much to returns goods to the UK which resulted in
a bad experience.
• No visibility of when returns were being processed.
• Money Refunded took to long.
As a result of these return issues repeat customers were being lost and new
potential clients were fearful of purchasing.

15. Customers Solution
Why don't you always offer free returns when most of your competitors do?
We thought about this, but most companies that offer this absorb the costs in other areas – for example
putting up the price of their products. We don’t want to do that, so decided to keep things as transparent as
possible by letting Customers know from the outset that it’s our policy to charge for returns. We do
sometimes offer free returns during special promotions.
How long does it take to process my returns?
We are pleased to say we will now process your returns in Australia, rather than waiting for them to get back
to the UK. We will try to process them as quickly as possible, but, as stated in the catalogue, it can take up to
2 weeks when we’re very busy.
Where should I send my returns?
If you are returning goods for refund please send them to:
ATTN Returns
CT Freight
2-4 Bradford Street
Alexandria
NSW 2015

16. Benefits
• Adding Value to Clients
• Developing New Channels and service options
• Low cost Start Ups (pre existing infrastructure and technology required)
• Securing Service Lanes
• Adding Volumes to consolidations
• Creating Additional Revenue Streams

17. Questions?
Thank you!
Presentation will be available
www.wcaecommerce.com